Earnings call transcript: Mastek misses Q2 2026 EPS as shares slide 6.8%

Mastek reported Q2 2026 fiscal results that met revenue expectations but fell short of EPS forecasts, leading to a 6.8% slide in shares. The company posted 33 INR per share earnings, missing the 33.19 INR forecast by 0.19, or 0.57%. Revenue amounted to 10.17 billion INR, exactly matching estimates. Revenue grew 8.3% year over year in rupee terms, reaching INR 1,018.7 crore for the first time.

Operating EBITDA margin declined to 14.4%, down 96 basis points from the prior quarter. The 12-month order backlog fell 7.7% sequentially but was up year over year. Over 40% of deals in the quarter were AI-related, signaling a shift in the business mix. Despite delays and weaker performance in the Middle East, Management expects FY 2027 to outperform FY 2026.

The stock fell 6.76% to $1,642.50 from $1,761.60, below its 52-week high. Investors focused more on margin compression, delayed deal starts, and weaker order-book conversion than the small EPS miss. Management remains optimistic about the second half of FY 2027 and the company's AI transformation strategy.